SMFG posted a 37 percent rise in its second-quarter net profit, but it kept its profit forecast at 700 billion yen for the year ending March, below the 751.9 billion yen average of 14 analyst estimates compiled by Refinitiv.

Mizuho reported flat growth in net profit in the three months through September, and kept its profit forecast at 570 billion yen, down 1.1 percent from the year prior but above the 567.1 billion yen average of 14 analyst estimates compiled by Refinitiv.

A sell-off in the U.S. financial sector overnight added to the market’s dim mood.

U.S. financial shares were hit by fears that regulations on the banking industry would tighten once the Democratic Party takes control of the U.S. House of Representatives.

“Japanese banks’ earnings were unimpressive, while negative sentiment in the U.S. financial sector was contagious,” said Takuya Takahashi, a strategist at Daiwa Securities.

He said the market is now focused on the third-quarter earrings result by U.S. chipmaker Nvidia Corp’s later in the day, which is expected to report a rise in its quarterly revenue.

“It’s one of the companies which led the U.S. market gains this year, and the result will become an indication of the chip industry’s outlook which will also affect Japanese chip-related companies like Tokyo Electron and Advantest,” Takahashi said.